Tuesday Feb 28 2017 saw increased volume and increased selling pressure.
While losses were small on all three indexes, it wasn’t the numbers that were important but the mood change.
The VIX Index jumped to $12.96 for a gain of almost 7%. It closed just off that high at $12.92. That is the highest close for the VIX Index since December 30 2016.
S&P Index Close
The S&P index ended the day down only 6.11 points to close at 2363.64, still near its all-time high.
Dow Jones Index Close
The Dow Jones ended the day down 25.20 points to close at 20,812.24 near its all-time high of 20,851.33.
NASDAQ Index Close
The NASDAQ closed down 36.46 points to end the day at 5,825.44 for a loss of 0.65%, the biggest loss of all three indexes.
Stock Market Outlook
Technically all the indicators pulled back from their bullish signals and turned lower. The worst though were the Fast Stochastic and Slow Stochastic momentum indicators which issued down or sell signals on the S&P by the close.
For the Slow Stochastic it is the first signal change since the up signal of Feb 3 and for the Fast Stochastic it is the first signal change since the up signal of Feb 6.
Support Levels To Be Aware Of:
The market has light support at the 2250 level. There is also light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook for Tomorrow – Wednesday Mar 1 2017
For Wednesday stocks need to shake off the recent sideways action and get moving. They run the risk of seeing a small short-term pullback which could move down to 2280 unless there are some solid back to back up days for the S&P.
The bias is still higher for the overall market trend but for Wednesday the bias has shifted to sideways with a slightly bias lower.
Hopefully the President’s speech will be enough to push stocks higher or certainly not lower. We also get the Fed minutes mid-March which if there is no rate increase will probably also mean further strength for the bulls. But that’s mid-March not the first day of March.
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